NEW DELHI: State Bank of India on Thursday got a new top management with Pratip Chaudhuri, a 36-year veteran of the bank, appointed the new chairman of the country's largest lender, along with three new managing directors–Hemant Contractor, Diwakar Gupta and A Krishna Kumar.
All four were so far deputy managing directors at SBI. While Chaudhuri was in-charge of international banking, Contractor was the bank's CFO, Gupta handled national banking and Krishna Kumar was responsible for deployment of information technology.
This is the first time that SBI, which accounts for nearly a quarter of the banking business in the country, will have four managing directors, taking the number of executive directors on the bank's board to five. R Sridharan, the senior-most MD, is due to superannuate at the end of June and the government will soon find a replacement for him.
Following the new appointments, there will be a reshuffle in the bank's operations, which includes 15,000 branches and 25,000 ATMs, as the structure was so far attuned to having two managing directors.
The new team is expected to focus on continuing the growth path charted over the last five years, which includes a strong focus on retail lending and deposit mobilization. Increasingly, SBI is seen to be lowering its reliance on bulk deposits from corporate houses, which are not just high-cost but also less sticky compared to retail deposits.
The strategy is also expected to help the bank improve its margin, which during the December quarter was estimated at 3.4%. Though the pace of growth of gross non-performing assets has slowed down, the bank's provision coverage ratio was at 64% at the end of December compared to RBI-prescribed 70%.
Human resources are another focus area given the bank's expansion plans and large number of retirements.
But bank executives say that this should not be a tough task since the four have been part of the senior management for at least two years.
All four were so far deputy managing directors at SBI. While Chaudhuri was in-charge of international banking, Contractor was the bank's CFO, Gupta handled national banking and Krishna Kumar was responsible for deployment of information technology.
This is the first time that SBI, which accounts for nearly a quarter of the banking business in the country, will have four managing directors, taking the number of executive directors on the bank's board to five. R Sridharan, the senior-most MD, is due to superannuate at the end of June and the government will soon find a replacement for him.
Following the new appointments, there will be a reshuffle in the bank's operations, which includes 15,000 branches and 25,000 ATMs, as the structure was so far attuned to having two managing directors.
The new team is expected to focus on continuing the growth path charted over the last five years, which includes a strong focus on retail lending and deposit mobilization. Increasingly, SBI is seen to be lowering its reliance on bulk deposits from corporate houses, which are not just high-cost but also less sticky compared to retail deposits.
The strategy is also expected to help the bank improve its margin, which during the December quarter was estimated at 3.4%. Though the pace of growth of gross non-performing assets has slowed down, the bank's provision coverage ratio was at 64% at the end of December compared to RBI-prescribed 70%.
Human resources are another focus area given the bank's expansion plans and large number of retirements.
But bank executives say that this should not be a tough task since the four have been part of the senior management for at least two years.
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